The country’s International Investment Position (IIP) widened to a net external liability position of US$54.9 billion (11.2 percent of the country’s GDP) as of end-March 2026.[1] This development was mainly driven by a faster decline in external financial assets relative to liabilities.

The decline in assets was primarily due to lower reserve assets, largely attributable to BSP foreign exchange operations and national government’s drawdowns on its foreign currency deposits with the BSP for debt servicing.

In addition, higher bond yields caused by market concerns over geopolitical uncertainties and weak global outlook contributed to downward valuation adjustments in external assets, including foreign-issued debt securities.

Despite global pressures, the Philippines’ external position remains supported by continued foreign investment inflows and access to external financing.

The IIP provides a snapshot of what the country owns abroad and owes to the rest of the world, making it a key indicator for assessing external vulnerability and financial stability. Bangko Sentral ng Pilipinas